In September it was municipal-bond exchange traded funds. This month it’s dividend-based ETFs. There’s a ton of them and some could be destined for an untimely demise, says Gary Gordon for ETF Expert.
For example, there are at least 12 large-cap, U.S. dividend ETFs. Do we really need this many? And let’s not forget the three similar high-yield dividend ETFs. However, within the giant heap of dividend ETFs, a couple stand out from the competition, according to Gordon. They are:
- iShares Dow Jones Dividend Fund (DVY) – This generates a reliable 3.3% of income by holding 100 of the highest dividend-yielding securities in the Dow Jones U.S. Total Market Index. Currently, it’s down 1.4% year-to-date.
- SPDR S&P Dividend (SDY) – SDY also offers 3.3% annually and pays out quarterly, tracking the S&P Dividend Aristocrat Index. Currently, it’s down 3.4% year-to-date.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.